Oyo State Challenges Presidency Over $3 Billion in NLNG Dividends and Alleged Revenue Gaps

The Oyo State government has raised concerns regarding the management and distribution of Nigeria LNG (NLNG) revenues, urging the federal presidency to provide a transparent accounting of significant sums received by the central government.

According to a report by Premium Times Nigeria, the state administration is seeking a public explanation regarding how 3 billion dollars in NLNG dividends collected under the administration of President Bola Tinubu was distributed, alongside inquiries into an alleged 9 trillion naira shortfall in dividend remittances.

Demands for Disclosure on Gas Revenue

Nigeria LNG Limited is one of the country’s primary foreign exchange earners, operating as a joint venture that periodically disburses substantial dividends to the government. Because federally collected resource revenues typically contribute to the federation account shared among the federal, state, and local governments, the handling of these proceeds is a consistent point of interest for subnational administrations.

In its challenge to the presidency, the Oyo State government highlighted the receipt of approximately 3 billion dollars during the current federal administration. The state has called for comprehensive disclosure on whether and how these funds were allocated across the federating units, pointing to the need for clear accounting in the governance of national hydrocarbon revenues.

Scrutiny Over an Alleged N9 Trillion Shortfall

Beyond the multi-billion-dollar inflows, the state government voiced alarm over what it characterized as an estimated 9 trillion naira gap connected to NLNG dividend records. The report did not specify the exact accounting period or methodology used to calculate this deficit, and further forensic breakdowns have not yet been made public.

Subnational governments in Nigeria have historically monitored revenue disbursements closely, particularly through forums such as the Federation Account Allocation Committee (FAAC). Persistent questions over whether all joint-venture earnings, royalties, and petroleum dividends are fully declared remain a major recurring theme in intergovernmental fiscal relations.

Fiscal Transparency and Federal-State Relations

The challenge from Oyo State underscores escalating scrutiny from state leaders over the administration of strategic national earnings amid wider economic reforms. Under President Tinubu, Nigeria has undertaken significant policy shifts, including foreign exchange unification and subsidy alterations, which have heightened discussions over how gross government receipts are managed and distributed.

As of the initial report, detailed responses from the presidency or federal fiscal authorities addressing the specific allegations of the N9 trillion discrepancy or the 3 billion dollar distribution were not outlined. The push from Oyo State emphasizes a growing call for open governance and clear accounting standards in the administration of Nigeria’s collective natural resource wealth.

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p class=”vbna-source-note”>Source: Premium Times Nigeria

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